Why St. Louis Is the Hottest Luxury Housing Market in the U.S. in 2025

Written by David Dodge  

Picture this: you’re on the hunt for a swanky, high-end home—maybe a sprawling mansion with a gourmet kitchen, a home theater, or a backyard that screams “fancy barbecue.” If you’re looking to buy in the U.S. right now, St. Louis, Missouri, might just be your best bet. For the third straight quarter, St. Louis has snagged the top spot as the hottest luxury housing market in the country, according to the Wall Street Journal/Realtor.com Housing Market Ranking released in late 2024. Let’s dive into why St. Louis is stealing the show, what’s happening in the luxury home scene, and why sellers are living the dream there in 2025.

St. Louis, Detroit, and Portland: The Big Three

St. Louis isn’t riding solo at the top. The same ranking puts Detroit as the second hottest luxury market, climbing up from third, while Portland, Maine, slipped to third. What’s the secret sauce these cities share? There just aren’t enough luxury homes to go around. Hannah Jones, a senior economic research analyst at Realtor.com, says this shortage is making these markets crazy competitive. It’s like trying to grab the last slice of pizza at a party—everyone’s fighting for it, and that drives prices up.

In St. Louis, the number of luxury homes for sale is down a whopping 41% compared to pre-COVID days. Detroit’s down 36%, and Portland’s at 39%. Meanwhile, the rest of the U.S. is only seeing about a 10% drop in luxury home supply. That’s a huge gap, and it’s why these cities are the ones to watch in 2025.

Why Are Luxury Homes So Scarce?

So, what’s causing this luxury home drought? It’s a perfect storm. The U.S. housing market has been a wild ride, with high mortgage rates—hovering between 6.62% and 7.04% in 2025, according to Freddie Mac—making it tough for folks to buy or sell. In fact, a May 2025 report from TheStreet Pro noted that existing home sales in March 2025 hit their lowest point since the housing bust 15 years ago. In St. Louis, fewer people are listing their high-end homes, which keeps supply tight. Low supply plus high demand equals a seller’s paradise.

If you’re selling a luxury home in St. Louis, you’re in luck. JT Monschein, a local real estate agent with the Monschein Team at Compass, says it’s a great time to be a seller. “Homes are still getting multiple offers—not the 10 or 15 we saw during the 2020-2022 frenzy, but enough to push prices above asking,” he explains. A May 2025 post on X even highlighted a $100,000 price drop on a luxury home in Webster Groves, a St. Louis suburb, showing that sellers are still commanding attention with high-end properties.

What Makes St. Louis So Special?

It’s not just the lack of homes that’s making St. Louis shine. The city’s got some unique perks that luxury buyers are loving in 2025:

• Lower Climate Risks: Unlike coastal cities dealing with wildfires or hurricanes, St. Louis is a safer bet for your investment. Sure, a May 2025 NBC News report mentioned severe weather, including possible tornadoes, hitting Missouri, with 20 square blocks of St. Louis damaged. But overall, the city’s lower risk of major climate disasters compared to places like Los Angeles or Florida makes it appealing for buyers dropping big bucks on a home. Hannah Jones points out that this stability is a huge draw for luxury buyers who want their investment to last.
• Affordable Luxury: Luxury in St. Louis doesn’t mean breaking the bank. The Wall Street Journal/Realtor.com report defines “luxury” as the top 10% of homes by price, and in St. Louis, that price tag is lower than the national average. You’re getting more mansion for your money compared to, say, New York or L.A., where luxury homes often start at $2 million or more. In St. Louis, you can snag a high-end home without needing to be a tech billionaire.
• Small Big City Vibes: St. Louis has a knack for feeling like a big city with a cozy, community twist. Monschein calls it a “small big city” with awesome restaurants, cultural hotspots, and a welcoming vibe. In Q3 2024, Realtor.com found that 52% of people eyeing St. Louis listings were locals, while 35% were from out of state, proving the city’s pulling in folks from all over.

Who’s Snapping Up These Homes?

The buyers in St. Louis are a mix of locals upgrading to their dream homes and out-of-towners relocating for work or lifestyle. Monschein says relocation traffic, which slowed during 2020-2022, is picking back up in 2025. Whether it’s a family wanting a massive estate or a professional moving for a job, buyers are finding St. Louis offers serious bang for their buck. But Monschein’s got a tip for buyers: move fast. “If you see a house you love, don’t wait,” he says. “It’s probably exciting other buyers too.”

What’s the Outlook for 2025?

St. Louis is likely to stay a luxury hot spot until more homes hit the market. A May 2025 Reuters report noted that rising mortgage rates and economic uncertainty are still challenges for the broader housing market, but luxury markets like St. Louis are holding strong. If mortgage rates drop, as some hoped for in 2025, more homeowners might list their properties, boosting supply. Realtor.com’s data from April 2025 showed a 30% year-over-year increase in national home inventory, which could eventually cool off hot markets like St. Louis if the trend continues. For now, though, St. Louis remains a seller’s market with fierce competition.

A May 2025 Fortune article also highlighted that the luxury sector is thriving despite a sluggish overall housing market, with mansion sales booming as wealthy buyers seek stable investments. St. Louis, with its affordability and low climate risks, fits right into this trend.

How the Rankings Work

The Wall Street Journal and Realtor.com drop their Housing Market Ranking every three months, sizing up 60 major U.S. cities with lots of luxury homes. They look at stuff like:

• How many homes are for sale
• How fast they’re selling
• How much prices are climbing
• Quality-of-life factors (think schools, jobs, and fun stuff to do)

St. Louis keeps crushing it because of its tight supply, fast sales, and strong demand, plus its awesome lifestyle perks. A March 2025 U.S. News report also noted St. Louis’ Housing Market Index score improved by six to seven points from June 2024 to January 2025, tying it with Orlando as a top market to watch.

Wrapping It Up

If you’re thinking about jumping into the luxury housing game in 2025, St. Louis is where it’s at. Sellers are in the driver’s seat, with homes flying off the market and often fetching more than the asking price. Buyers, you’ll need to act quick, but you’re getting a killer deal compared to pricier markets. With low climate risks, affordable luxury, and that “small big city” charm, St. Louis is proving it’s a heavyweight in the luxury housing world.

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